topic Where do I enter details from 1098 for rental property? in Investors & landlords

Where do I enter details from 1098 for rental property?

pearl12970 — Wed, 31 Jul 2019 00:53:01 GMT

We converted our primary home to a rental property in January 2018 and it was rented the entire year. Where do I enter the details from form1098 like mortgage interest, outstanding mortgage principal since it is no longer our primary home?

Re: Where do I enter details from 1098 for rental property?

Anonymous_ — Wed, 31 Jul 2019 00:58:37 GMT

Are you using TurboTax? The interest you paid is ultimately deducted on Schedule E.

You would enter the interest during the Step-by-Step interview process, specifically in the Rental Properties and Royalties section of the program.

Re: Where do I enter details from 1098 for rental property?

pearl12970 — Wed, 31 Jul 2019 22:57:00 GMT

Thank you for replying. We have converted our primary home to a rental property last year. I entered the relevant information from 1098 under the Rental Properties and Royalties section but during the Final Review Turbo Tax is prompting me to enter the 1098 information again under Mortgage Interest, Refinancing, and Insurance section. Should I ignore it?

Under the Mortgage Interest, Refinancing, and Insurance section it asks me other questions like "Is this loan a home equity line of credit or a loan you've ever refinanced?" etc. Do I need to answer the remaining questions or just ignore the entire section since it is not our primary home anymore?

Re: Where do I enter details from 1098 for rental property?

Anonymous_ — Wed, 31 Jul 2019 23:24:56 GMT

Are you using a desktop version of TurboTax? If so, enter Forms Mode and check your Schedule E and also check to see whether there is a Schedule A.

I cannot seem to reproduce the issue you are experiencing but then I do not know the exact steps you took to get that prompt in the review section. Regardless, do not enter your total interest twice. The program can do the split calculation for you but, frankly, you would probably fare better if you did the allocation yourself.

Re: Where do I enter details from 1098 for rental property?

pearl12970 — Thu, 01 Aug 2019 19:11:33 GMT

I am using TurboTax Online which does not have the option to switch to Forms mode.

Turbotax keeps prompting me that I owned a home in 2018 and asking me to enter all relevant details, regarding loan, mortgage interest, if I ever refinanced etc.

Since that home is no longer our primary home; it is now a rental property. I need to make some change in my TurboTax which makes it clear that we no longer OWN a home. We converted it to a rental property so it would be now considered a RENTAL. I must have missed making that change. How and where do I address it?

Re: Where do I enter details from 1098 for rental property?

Anonymous_ — Thu, 01 Aug 2019 19:17:54 GMT

In the Rental Properties and Royalties section, click Update to the right of Property Profile. Proceed through the screens until you get to Do Any of These Situations Apply to This Property. Check the box indicating that you converted the property from personal use to rental use.

Re: Where do I enter details from 1098 for rental property?

pearl12970 — Thu, 01 Aug 2019 19:32:29 GMT

Thanks TagTeam. That really helps!!

I had convereted it into rental in December 2017. Should it not automatically have picked it up from my 2017 tax returns?

Re: Where do I enter details from 1098 for rental property?

Anonymous_ — Thu, 01 Aug 2019 19:35:07 GMT

@pearl12970 wrote:
Thanks TagTeam. That really helps!!
I had convereted it into rental in December 2017. Should it not automatically have picked it up from my 2017 tax returns?

Actually, yes it should, but sometimes relevant information does not get transferred to the return for the following tax year. Regardless, since you converted it in 2017, and it was a rental for the entirety of 2018, you do not have to concerned about a split between Schedules A and E.

Re: Where do I enter details from 1098 for rental property?

pearl12970 — Thu, 01 Aug 2019 19:43:38 GMT

I made the change you suggested. Yet, under Deductions and Credits, it says Let's Check for Home Expenses and prompts me that " You told us you owned a home in 2018, but we didn't see any home-related expenses" Not sure what I did wrong.

Re: Where do I enter details from 1098 for rental property?

Anonymous_ — Thu, 01 Aug 2019 20:07:58 GMT

That was most likely transferred from your 2017 return.

You used 2017 TurboTax for the 2017 tax year and during that year you converted your primary home to a rental, which had to involve allocations between the two. If you have expenses (e.g., real estate taxes, mortgage interest) for your current principal residence and you plan to itemized deductions, then you should enter those expenses. Otherwise, you can ignore the prompt.

Re: Where do I enter details from 1098 for rental property?

pearl12970 — Thu, 01 Aug 2019 20:31:25 GMT

Thank you tagteam! What about the questions about my loan? Whether I refinanced ? If it was used just towards purchase of the home etc? Can I ignore that too?

Re: Where do I enter details from 1098 for rental property?

Anonymous_ — Thu, 01 Aug 2019 21:16:32 GMT

Yes, ignore unless you actually did a refi and/or have mortgage interest to report on your principal residence (Schedule A - itemized deductions).